CWTCALIFORNIA WATER SERVICE GROUP

Water Supply

Revenue: $964M; 6.4% YoY
Operating margin: 17.7%; 29% YoY
EBITDA: $317M; 12% YoY
Market cap: $3.0B
Employees: 1,336; $721K revenue each
Net debt / EBITDA: 1.4×; $434M net debt
AI in 10-K: 0.1; mentions per 10K words

Takeover score 3 of 13

Fixable underperformance 0 of 7

TSR below peersNo
1 of 5 years
3+ of last 5 years
High CEO pay despite TSRNo
$5M median
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
237% of net income
Cash flow under 80% of net income
Dilutive SBCNo
1% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
25% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
1% of assets
Over 40% of assets
Shareholder dissentNo
95% lowest support
Any vote under 80% support

Buyer economics 3 of 4

Low revenue per employeeYes
$721K · 20th pct
Bottom quartile of its SIC industry
Quiet on AIYes
0.1 per 10K words · 10th pct
Bottom quartile of AI mentions in 10-Ks
Net cashNo
1.4× EBITDA net debt
More cash than debt, positive EBITDA
Buyout-sizedYes
$3.0B market cap
Market cap $500M–$5B

Catalysts 0 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingNo
−$641K net
Net sales over $10M in 12 months

Financials

Metric	FY2021	FY2022	FY2023	FY2024	FY2025	YoY	Trend
Revenue	$766M	$773M	$790M	$906M	$964M	6.4%
Operating income	$127M	$128M	$77M	$225M	$170M	24%
Net income	$101M	$96M	$52M	$191M	$128M	33%
Operating cash flow	$232M	$244M	$218M	$291M	$303M	4.0%
Stock-based comp	$7M	$5M	$3M	$4M	$5M	33%
Buybacks	$2M	$2M	$2M	$1M	$1M	0.1%
Dividends	$47M	$54M	$59M	$65M	$74M	13%

Deal filings

None.

13D filers

None on file.

Insider trading

Open-market buys, 12 mo: $24K · 1
Open-market sells, 12 mo: $664K · 7
Net: −$641K

Pay vs performance

Year	CEO total comp	Comp actually paid	TSR (indexed)	Peer TSR
FY2025	$7M	$3M	90	90
FY2024	$5M	$5M	97	93
FY2023	$5M	$4M	108	106
FY2022	$3M	$3M	124	123
FY2021	$4M	$4M	144	144